alexandra terekhova
Behavioral economics
Everything that you want to know: experiments, books, theory.
Behavioral economics study psychological effect on the economics decisions of human beings with defferent IQ level, age, field of working and erudition. People often make irrationals decisions, it depends on some factors, such as:
Bounded Rationality
Individuals prefer to turn to their knowledge, that is limited, and create decision that is dood enough but not the best one. Usually the reason is laziness to use sistem 2 of our thinking.
Individuals prefer to turn to their knowledge, that is limited, and create decision that is dood enough but not the best one. Usually the reason is laziness to use sistem 2 of our thinking.
Lack of control
Type of irrational decision that are made depending on self-control. For instance, drug adidct is not able to stop because the power of addiction is huge.
Type of irrational decision that are made depending on self-control. For instance, drug adidct is not able to stop because the power of addiction is huge.
Cognitive Bias
Individuals prefer to make an irrational decision based on not proven or not full knowledge and assumptions about this topic.
Individuals prefer to make an irrational decision based on not proven or not full knowledge and assumptions about this topic.
Sunk cost fallacy
Type of cognitive bias that is showing the choice of people based on past experience and past mistakes. Choosing something new requires massive work of system 2 wherease sticking to usual staff does not bother this system a lot.
Type of cognitive bias that is showing the choice of people based on past experience and past mistakes. Choosing something new requires massive work of system 2 wherease sticking to usual staff does not bother this system a lot.
Discrimination
The case when person is rejecting cooperation with another based on their look/age/race/gender and etc. even if that person is well-qualified and their knowledges would benefit them.
The case when person is rejecting cooperation with another based on their look/age/race/gender and etc. even if that person is well-qualified and their knowledges would benefit them.
Herd Mentality
In some cases individuals choose to lean on the opinion of the crowd ( majority of the people) due to confidence that everyone else knows more and belief that the majority cannot be wrong.
In some cases individuals choose to lean on the opinion of the crowd ( majority of the people) due to confidence that everyone else knows more and belief that the majority cannot be wrong.
THE QUESTION
Can we stop these factors influence our choices?
We are currently fighting for many rights. Many people claim that appearance or other parameters do not affect them, but unfortunately from the experiment we can see that this is not the case.
You need to be aware of the factors that influence decisions so as not to make mistakes and not take irrational actions for business or everyday life. Since not many people have talked about this subject up to this point, these elements won't go away very soon. But if more people know how to handle and manipulate them, the problem of irrational decisions can be eliminated.
You need to be aware of the factors that influence decisions so as not to make mistakes and not take irrational actions for business or everyday life. Since not many people have talked about this subject up to this point, these elements won't go away very soon. But if more people know how to handle and manipulate them, the problem of irrational decisions can be eliminated.
“
To know, is to know that you know nothing. That is the meaning of true knowledge.
Terekhova Alexandra
Behavioral Economics
